Operations support systems (OSS) developer TTI Team Telecom International Ltd. (Nasdaq: TTIL) has acquired Ukraine software house Telesens LLC for $2.7 million. The final price will be subject to downward adjustments for the company's actual 2007 annual turnover and certain performance factors, and will be paid in cash over a three-year period.
Telesens LLC also operates in Russia and other CIS states. It has an annual turnover of over $2 million and 100 employees. The company has been developing, implementing and promoting software solutions and related professional services for the telecommunications market since 1998. Customers include Kievstar, Kazakhstan Telecom, UKR Telecom and MTS Ukraine.
TTI said that the acquisition of Telesens is part of the company's strategy to expand its sales platform within strategic territories, lower software development costs through offshore development, and to be better equipped to develop new products for growing markets.
TTI chairman and CEO said Meir Lipshes said, "This acquisition is an excellent growth opportunity for TTI Telecom. Bringing Telesens onboard achieves two important goals for TTI Telecom, enlarging and enhancing our footprint in the CIS market and enabling us to provide more cost-effective and efficient software solutions to our customers worldwide through off-shore development. I believe that within the first year of the acquisition, we will see a positive contribution to our financial results.''
TTI closed at $2.42 yesterday, giving a market cap of $38 million. The share fell 1.9% at the opening today.
Published by Globes [online], Israel business news - www.globes-online.com - on December 11, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007